economics Mcqs
1. the national economy2. profit maximizing under perfect competition and monopoly3. application of economics4. the aggregate demand aggregate supply model5. surplus6. money interest rates and output7. average and total cost8. stabilization adjustment reform and privatization9. risks and diversification efficient market hypothesis10. the phillips curve11. supply and demand12. capital formation investment choice information technology and technical progress13. aggregate supply unemployment and inflation14. elasticity15. comparative gdp16. roots of modern macroeconomics17. production factors18. poverty malnutrition and income inequality19. trade regulations and industrial policies20. monetary union21. exchange rate systems and currency crises22. economic development in historical perspective23. exchange rate determination24. monopoly competition25. the balance of payments26. inflation productivity27. macroeconomic issues and analysis28. employment migration and urbanization29. macroeconomic policy tools30. supply side policies31. exchange rate adjustments and the balance of32. miscellaneous33. taxation34. trade policies for the developing nations35. markets efficiency and the public interest36. the external debt and financial crises37. budget deficits and the trade balance38. alternative theories of the firm39. public goods40. the meaning and measurement of economic development41. characteristics and institutions of developing countries42. agriculture irrigation system of pakistan43. education health and human capital44. economic problems of developing countries45. theories of economic development46. basic of economics47. consumer theory vs real consumers48. applied microeconomics49. long term economic growth50. externality internality51. fiscal and monetary policy52. prices wages taxes53. balance of payments aid and foreign investment54. international factor movements and multinational corporations55. entrepreneurship organization and innovation56. the international economy and globalization57. population and development58. non tariff trade barriers59. foundations of modern trade theory60. global economic development61. market62. rural poverty and agricultural transformation63. regional trading arrangements64. foreign exchange65. introduction to economics66. world economy miscellaneous67. sources of comparative advantage68. natural resources and the environment toward sustainable development69. monopoly70. asymmetric information71. income inequality72. labour market73. tariffs74. development planning and policy making the state and the market75. oligopoly76. industrial development77. costs supply and perfect competition78. human capital79. monetary fiscal and incomes policy and inflation80. stocks
1151. Declining costs per unit of output results from international trade especially if ?
comments icon0

A. International trade affords producers monopoly power

B. Producing goods entails increasing costs

C. Economies of scale exist for producers

D. National governments levy imports tariffs and quotas

1152. A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?
comments icon0

A. marginal costs

B. advertising costs

C. variable costs

D. fixed costs

1153. The Lorenz curve shows ?
comments icon0

A. income concentration relative to a 45-degree line

B. the change in GDP per capita over time

C. patterns of poverty between developed and developing countries

D. the poorests income shares fall in the early stages of growth

1154. Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are ?
comments icon0
A. sticky prices

B. fixed prices

C. market prices

D. regulatory prices

1155. Idiosyncratic risk is the ?
comments icon0

A. risk associated with moral hazard

B. risk associated with adverse selection

C. uncertainty associated with the entire economy

D. uncertainty associated with specific companies
1156. An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?
comments icon0

A. a government franchise monopoly

B. a economies of scale monopoly

C. a natural monopoly

D. a fixed cost monopoly

1157. If A imposes a per unit tariff of $10 on imports from both B and C A will import ?
comments icon0

A. 400 units from B and 200 units from C

B. 200 units from C

C. 200 units from each

D. 400 units from B

1158. The formula for average variable cost (AVC) is ?
comments icon0

A. DTVC/Dq

B. Dq/DTVC

C. q/TVC

D. TVC/q
1159. What is the ratio of Punjabi speaking population ?
comments icon0

A. 38%

B. 68%

C. 48%

D. 58%

1160. Which of the following is an example of price floor ?
comments icon0
A. the minimum wage

B. restricting petrol prices to Rs100 per litre when the equilibrium price is Rs150 per litre

C. All of these answers are price floors

D. rent controls

1161. Which of the following statements is False ?
comments icon0
A. For a market to be contestable, the product must be produced with a labor-intensive technology

B. In a contestable market, economic profits cannot persist in the long run.

C. participants in a contestable market are continuously faced with competition or the threat of competition because entry is cheap

D. In a contestable market forces will guarantee that the firms produce efficiently or be driven out of business

1162. According to classical models, the level of employment is determined primarily by ?
comments icon0

A. the level of aggregate demand for goods and services.

B. the quantity of money

C. interest rates

D. prices and wages
1163. Economics in India Pakistan the Philippines and Mexico argue the foodgrain growth would not have kept up with population growth in the last four decades without ?
comments icon0

A. improved packages of high-yielding seed varieties

B. fertilizers, pesticides and irrigation

C. #NAME?

D. better extension service

1164. In free trade A will import ?
comments icon0

A. 700 units from country C and 600 units from country B

B. 600 units from country C and 400 units from country B

C. 700 units from country C

D. 600 units from country C
1165. Monopolistic competition differs from perfect competition primarily because ?
comments icon0
A. in monopolistic competition, firms can differentiate their products

B. in monopolistic competition entry into the industry is blocked

C. in monopolistic competition there are relatively few barriers to entry.

D. in perfect competition firms can differentiate their products

1166. Criticisms against the North American Free Trade Agreement include all of the following except ?
comments icon0

A. The environment is not adequately protected by NAFTA

B. wages in the United States will rise relative to Mexican wages

C. None of the above

D. American jobs will be lost to workers in Mexico

1167. In which of the following circumstances would a cartel be most likely to work ?
comments icon0
A. The market for copper, where there are very few producers and the product is standardized.

B. The automobile industry, where there are few producers but there is great product differentiation.

C. The coffee market where the product is standardized and there are a large number of coffee growers.

D. The fast-food market where there are a large number of producers but the demand for fast food is inelastic

1168. Diversification of portfolio can ?
comments icon0
A. reduce idiosyncratic risk

B. increase the standard deviation of the portfolios return

C. eliminate all risk

D. reduce aggregate risk

1169. Which of the following is not a consequence of growing agricultural commercialization ?
comments icon0

A. An increase in rural poverty

B. Women gain in decision making power

C. An increase in the number of landless laborers

D. Workers nutrition is reduced

1170. Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?
comments icon0

A. There will be a shortage of petrol

B. A significant increase in the supply for petrol could cause the price ceiling to become a binding constraint.

C. A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.

D. There will be surplus of petrol

1171. The NAFTA is a ?
comments icon0

A. monetary union

B. customs union

C. free trade area

D. common market

1172. In his empirical test of comparative advantage Wassily Leontief found that ?
comments icon0
A. None of the above

B. U.S imports are labor intensive relative to U.S exports

C. U.S exports are neither labor nor capital intensive

D. U.S exports are capital intensive relative to U.S imports

1173. An individual firms demand for a factor of production ?
comments icon0
A. Slopes downward due to the factors diminishing marginal product

B. is perfectly elastic (horizontal) if the factor market is perfectly competitive

C. Slopes downward because an increase in the production of output reduces the price at which the output can be sold in a competitive market, thereby reducing the value of the marginal producing the value of the marginal product as more of the factor is use

D. slopes upward due to the factors increasing marginal product

1174. The factor endowment theory was pioneered by ?
comments icon0
A. Eli Heckscher and Bertil Ohlin

B. Adam smith

C. David Ricardo

D. Wassily Leontief

1175. The government increase government spending to try to reduce unemployment This is an example of ?
comments icon0
A. fine tuning

B. automatic stablisers

C. laissez-faire.

D. monetary policy

1176. The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?
comments icon0

A. beginning value

B. compound value

C. present value

D. fair value

E. future value

1177. For a price ceiling to be binding constraint on the market the government must set it ?
comments icon0
A. below the equilibrium price

B. above the equilibrium price

C. precisely at the equilibrium price

D. at any price because all price ceilings are binding constraints

1178. An oligopoly with a dominant price leader will produce a level of output ?
comments icon0

A. that would prevail under competition

B. between that which would prevail under competition and that which a monopolist would choose in the same industry

C. between that which would prevail under competition and that which a monopolistic competitor would choose in the same industry.

D. equal to what a monopolist would choose in the same industry

1179. The study of a companys accounting statements and future prospects to determine its value is known as ?
comments icon0

A. diversification

B. information analysis

C. fundamental analysis

D. risk management

1180. If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ?
comments icon0

A. the amount allocated by the political process

B. an amount equal to the price of output times total output

C. the value of its marginal product

D. an equal share of output

1181. The Essay on the Principle of Population was written by ?
comments icon0

A. The World Bank

B. Abraham Lincoin

C. Thomas Robert Malthus

D. Julian Simon

1182. What is the share of Punjab in the total population of Pakistan ?
comments icon0
A. 55.5%

B. 68.40%

C. 65.50%

D. 60.40%

1183. The value of the marginal product of labor is ?
comments icon0

A. the wage of labor times the quantity of labor

B. none of these answers

C. the price of the output times wage of labor

D. the price of the output times the marginal product of labor

E. the wage of labor times the marginal product of labor

1184. If a firm has some degree of market power, then output price ?
comments icon0

A. no longer influences the amount demand of the firms product

B. is determined by the actions of other firms in the industry

C. is guaranteed to be above a firms average cost.

D. becomes a decision variable for the firm
1185. How much of the total potential labour force is unemployed ?
comments icon0

A. 2.76 million

B. 2.65 million

C. 2.42 million

D. 2.82 million

1186. Sala-i-Martin interpolates income distribution by ?
comments icon0

A. quientiles

B. percentiles

C. simulation

D. relative ratio measures

1187. A market is defined as perfectly contestable if ?
comments icon0
A. entry to it and exit from it are both costless

B. entry to it and exit from it are both costly

C. entry to it costless, but exit from it is costless

D. entry to it is costly, but exit from it is costless

1188. An increase in the prevailing interest rate ?
comments icon0
A. decreases the present value of future return from investment and decreases investment

B. decreases the present value of future returns from investment and increase investment

C. increases the present value of future returns from investment and increases investment

D. increases the present value of future returns from investment and decreases investment

1189. A value of 1 in Gini index represents ?
comments icon0

A. low inequality

B. maximum inequality

C. 10/10 000% inequality

D. 1% inequality

1190. A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the ?
comments icon0

A. monetarists

B. new classical school

C. Keynesians

D. post-keynesians

1191. Which country is not a member of the European Union ?
comments icon0

A. Spain

B. Germany

C. Iceland

D. France

1192. A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?
comments icon0

A. an isocost line

B. an indifference curves.

C. an isoquant.

D. a production functions

1193. One of the predictions of the Heckscher-Ohlin model is that ?
comments icon0

A. countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other

B. countries with tend to specialize but not completely in their comparative advantage good

C. reciprocal demand leads to an equilibrium terms of trade by inducing change in both demand and supply

D. All of the above
1194. An increase in the price of automobiles shifts the demand for autoworkers to the ?
comments icon0

A. left and increases the wage

B. right and decreases the wage

C. right and increases the wage

D. left and decreases the wage

1195. The rational-expectation hypothesis suggests that the forecasts that people make concerning future inflation rates ?
comments icon0

A. consistently underestimate the actual rate of inflation in the future

B. are always correct

C. are correct on average, but are subject to errors that are distributed randomly

D. consistently overestimate the actual rate of inflation in the future.

1196. The costs that depend on output in the short run are ?
comments icon0

A. total fixed cost only.

B. total variable costs only.

C. both total variable costs and total costs.

D. total costs only

1197. Trade diversion takes place when ?
comments icon0

A. a country moves from autarky to free trade

B. a movement to a customs union reduces the costs of trade through standardization economic integration results in a

C. economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs

D. economic integration results in a movement in product origin to a lower cost member country

1198. Income inequalities are often shown on a ?
comments icon0
A. Lorenz curve

B. marginal inequality curve

C. production possibility curve

D. sen curve

1199. The development of high-yielding varieties (HYVs) of wheat and rice is known as ?
comments icon0

A. the agribusiness revolution

B. the Green Revolution

C. farming system theory

D. Agri-R&D

1200. In food demand growth equation D = ? + a E, a is the income elasticity of demand for food E is the per capita income growth and ? is ?
comments icon0

A. Poverty rates

B. change in the quantity of food demanded per capita

C. population growth

D. food security index